Investindustrial acquires majority stake in Morgan Motor Company

Mergers & Acquisitions | Midlands | Retail | Transport & Distribution

Morgan motor cars in front of brick buildingsInvestindustrial has today announced the acquisition of a majority stake in Morgan Motor Company Ltd, an iconic 110-year old British sports cars manufacturer. Terms of the transaction were not disclosed, and it is expected to complete in April 2019.

The Morgan family will continue to act as stewards for the brand and retains a minority shareholding. Meanwhile, for the first time in its history, the management team and all employees will become shareholders in the business. The investment is executed without financial debt, and Morgan will have a positive net cash position upon closing of the transaction.

The investment in Morgan is made by a separate fund from Investindustrial VLP, whose investment subsidiaries hold a stake in Aston Martin Lagonda Global Holdings PLC.

Founded in 1909, Morgan continues to this day to hand-build premium sports cars with a classic design in its factory in Malvern, which is visited by more than 30,000 enthusiasts each year. With revenues of £33.8m and net profit of £3.2m in 2018, the company sells around 700 cars per year including a portfolio of iconic car designs and a unique ‘3 Wheeler’ manufactured using three core elements; ash, aluminium and leather.

As part of the transaction, and as a sign of its long-term faith in the company and the wider British automotive sector, Investindustrial will support Morgan to accelerate new product development, after the launch today of the new Plus Six at the Geneva motor show, the first to adopt the company’s new CX-Generation architecture, increase global distribution and broaden customers’ experience with unique events, enabling Morgan to fulfil its global potential as an iconic maker of hand-built British sports cars.

In supporting the company, Investindustrial will leverage its vast experience and track record in the automotive industry, developed through a number of successful investments over the last 30 years, such as Aston Martin and Ducati.

Dominic Riley, Chairman, Morgan Motor Company, commented: “The past two years have been the most successful in our company’s 110-year history. However, to really fulfil Morgan’s full potential and secure our long-term future, both the family and management team, felt it was essential to bring in a strategic partner. A partner that shares our vision for Morgan and has the expertise, financial resources and track record of success in the automotive world, to make it happen. That partner is Investindustrial.”

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